Which 1997 financial crisis began when Thailand devalued its baht, spreading turmoil across Asian stock markets?

The 1997 financial crisis that began when Thailand devalued its baht was the Asian financial crisis.

Thailand abandoned the baht’s fixed exchange-rate arrangement on 2 July 1997 after intense pressure on its foreign-exchange reserves. The baht then fell sharply, undermining companies and banks that had borrowed heavily in foreign currencies.

Financial stress spread to Indonesia, South Korea, Malaysia and the Philippines, while stock markets across the region suffered steep declines. International investors withdrew capital, and several governments required emergency assistance from the International Monetary Fund.

The crisis is sometimes called the Asian currency crisis or East Asian financial crisis. It was not confined to stock exchanges: currency collapses, corporate debt, banking weaknesses and property speculation all played important roles.